Following agreement to constrain global warming to ‘well below 2°C’ at COP21 in Paris, businesses, as well as governments, will be obliged to demonstrate how they will be 2°C compliant.
After two weeks of intense negotiations and lobbying, the agreement reached by the global community at COP21 in Paris sets an agreed target to constrain global average temperature rise to ‘well below 2°C’, with an ultimate target of 1.5°C. It is clear that with voluntary commitments made by many of the world’s nations in Paris resulting in a predicted temperature rise of 2.7°C, much more is yet to be done.
In the face of the challenges of climate change, energy security, economic growth and a growing divestment movement, the future of the energy fuel mix and the health of the planet seem inextricably linked. This article by our intern Amy Elliott discusses what can be expected in the future.
Recently, the fossil fuel divestment movement has appeared frequently in the public domain. It has grown significantly since its introduction as a radical student-driven campaign. With the support of established organisations and institutions, fossil fuel divestment has grown into a mainstream movement that is demanding the attention and response of individuals, institutions, investment houses, companies and governments across the globe.
Are fossil fuels the sub-prime assets of the future? The debate about the long term risk of investments in fossil fuel businesses is moving from a fringe moral debate initiated by the CarbonTracker team in 2011 into a mainstream investment risk debate. Recently, powerful interventions from Bank of England Governor Mark Carney, Energy Secretary Ed Davey and even former BP CEO John Browne have highlighted the issue. Climate change negotiations for Paris 2015 could be pivotal.
The clear link between rising global temperatures and the emissions from the combustion of fossil fuels is established. Limiting the warming effect means limiting Carbon Dioxide (CO2) emissions from the combustion of fossil fuels.